The European Commission has proposed a 90 billion euro loan package for Ukraine for 2026 and 2027, aiming to cover both military and budget needs as the war with Russia continues. Most of the funding would be directed to military assistance, while a smaller share would support Ukraine’s state budget and public services.
The Commission says the package is designed to provide stable and predictable funding, and it is urging fast approval so the money can start flowing in the second quarter of 2026. Commission President Ursula von der Leyen said the EU wants Ukraine to be “in a position of strength,” linking the loan plan to Ukraine’s defense and longer-term security.
What the EU proposed
The Commission adopted a set of legislative proposals to secure continued financial support for Ukraine in 2026 and 2027. The package includes a proposal to establish a support loan for Ukraine worth 90 billion euros, along with proposals to amend the Ukraine Facility and to amend the Multiannual Financial Framework Regulation so the EU budget “headroom” can cover the loan.
EU leaders agreed in December to provide 90 billion euros to support Ukraine’s budgetary and military needs over the next two years, and the Commission says its proposals operationalize that political agreement. The Commission describes the 90 billion euros as a limited recourse loan for 2026 and 2027, referred to as the Ukraine Support Loan.
Where the money would go
Under the Commission’s plan, roughly two thirds of the loan—about 60 billion euros—would be allocated to military assistance, while the remaining one third—about 30 billion euros—would be provided as general budget support. Von der Leyen also described the spending plan in similar terms, saying 60 billion euros would be for military support and 30 billion euros for budget aid.
The Commission says the support is intended to help Ukraine strengthen its defense capabilities while ensuring the state can keep functioning and continue providing basic public services. It also says the military-focused component would contribute to Ukraine’s resilience and support closer integration with Europe’s defense industrial base.
How the loan would be financed and repaid
The Commission says the support would be financed through common EU borrowing from capital markets. It adds that the loan would be guaranteed by the “headroom” of the EU budget, similar to other EU financial assistance programs for Ukraine implemented since 2023, including Macro-Financial Assistance+, the Ukraine Facility, and a Macro-Financial Assistance loan under the G7-led Extraordinary Revenue Acceleration (ERA) loans initiative.
On repayment, the Commission says the EU reserves the right to use Russian assets immobilised in the Union to repay the loan, in full accordance with EU and international law. Separately, EU leaders agreed that Ukraine would only need to repay the money once Russia ends its war and pays reparations for the damage it caused, according to reporting on the plan.
Timing, approvals, and conditions
The Commission says the proposals have been submitted to the European Parliament and the Council, and it stresses that the acts must be adopted swiftly for the Commission to begin providing support in the second quarter of 2026. Von der Leyen said the Commission wants the loan money to start flowing by April, but that EU member countries and the European Parliament must approve the spending plan before it can take effect.
The Commission says the package will be backed by “strong conditionality mechanisms,” including steps to strengthen the rule of law and fight corruption set out under the Ukraine Plan. Von der Leyen also said the conditions are “non-negotiable” for any financial support, including reforms related to rule of law and anti-corruption efforts.
Why the EU says the funding is needed
The International Monetary Fund estimates Ukraine will need 137 billion euros over 2026 and 2027, according to reporting on the Commission’s plan. The Commission says its proposed support package would cover two thirds of Ukraine’s overall financing needs for the next two years, citing IMF assessments, while also emphasizing that continued and coordinated support from international partners remains essential.
The Commission also says that since the start of Russia’s war of aggression against Ukraine, the EU and its member states have provided 193.3 billion euros in overall support to Ukraine and Ukrainians, including 3.7 billion euros from the proceeds of immobilised Russian assets. It characterizes that total as more support than provided by any other partner.
